Tim Larson
About Tim Larson
Tim Larson, age 51, is President and Chief Executive Officer of Champion Homes, Inc. (NYSE: SKY) and has served on the Board since December 13, 2024; he previously served as Chief Growth Officer from May 3, 2021 until his CEO appointment. He holds a B.A. in Strategic Communications from the University of Minnesota and has extensive consumer products and manufacturing leadership experience (Jostens CEO; Polaris CMO/SVP) . Under his leadership in FY2025, revenue increased 23% to $2.5B, net income rose 35% to $198M, EPS was $3.42, and annual incentive payout achievement was 115.5% based on EPS of $3.56 and revenue of $2,483M; company cumulative TSR (from FY2021 base) reached $604 on a $100 investment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Champion Homes | Chief Growth Officer | May 2021–Dec 2024 | Led digital direct-to-consumer strategy, expanded retail footprint, drove customer-centric approach |
| Polaris Industries | Chief Marketing Officer; SVP Global Customer Excellence | Aug 2013–Jan 2018 | Transformed customer/digital experience across dealer retail channels |
| Jostens, Inc. | President & CEO | Jan 2008–Jan 2013 | Led consumer products business across schools/professional sports |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Botanic Innovations, LLC | Executive Board Chair & Advisor | Jan 2018–Mar 2025 | Governance and advisory; product/brand oversight |
| Spectro Alloys | Executive Board Chair & Advisor | Sep 2018–Sep 2024 | Governance and strategic advisory |
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Base Salary Rate ($) | $392,308 | $400,000 | $650,000 (post-appointment) |
| Actual Salary Paid ($) | $392,308 | $400,000 | $484,400 |
| Target Bonus % of Salary | 125% (per FY2023 role; paid via Non-Equity Incentive) | 80% (CGO) | 138.5% (CEO) |
| Annual LTI Target ($) | N/A | N/A | $3,000,000 beginning FY2026 |
Performance Compensation
Annual Incentive Plan Metrics (FY 2025)
| Metric | Weight | Target | Actual | Payout Scale | Payout (Overall) |
|---|---|---|---|---|---|
| Consolidated EPS | 50% | $3.40 | $3.56 | 50%-200% linear (threshold-target-overperform-max) | 115.5% |
| Consolidated Revenue | 50% | $2,447M | $2,483M | 50%-200% linear (threshold-target-overperform-max) | 115.5% |
Annual Incentive Payout (FY 2025)
| Metric | Target Bonus ($) | Max Bonus ($) | Performance Achievement (% of payout) | Actual Bonus Paid ($) |
|---|---|---|---|---|
| Annual Incentive | $900,250 | $1,800,500 | 115.5% | $712,611 |
Annual Incentive (FY 2024 baseline for context)
| Metric | Weight | Target | Actual | Result |
|---|---|---|---|---|
| Consolidated EPS | 50% | $3.81 | $2.53 | Below threshold; no bonus |
| Consolidated Revenue | 50% | $2,100M | $2,025M (Committee excluded Regional Homes for target measurement) | Below threshold; no bonus |
Long-Term Incentive Design (FY 2025 grants)
| Award | Weight | Target/Threshold/Max | Vesting | Notes |
|---|---|---|---|---|
| PSUs (relative TSR) | 60% of PSU award | 55th percentile target; 25th threshold; 80th max | 3-year cliff; performance period ends Mar 25, 2028 | Vests at change-in-control at greater of 100% or performance-to-date |
| PSUs (SF Home Completion Market Share) | 40% of PSU award | 2.75% target; 2.50% threshold; 3.00% max | 3-year cliff; performance period ends Mar 25, 2028 | Same CIC treatment as above |
| RSUs | 50% of LTI grant | N/A | 1/3 annually over 3 years | RSUs prior to Aug 1, 2024 vest at CIC; RSUs granted on/after Aug 1, 2024 require qualifying termination within 12 months of CIC |
FY 2025 LTI Grants to Tim Larson
| Grant | Shares (#) | Grant-Date Fair Value ($) |
|---|---|---|
| RSUs (Mar 25, 2025) | 15,946 | $1,560,635 |
| PSUs target (Mar 25, 2025) | 15,946 target; 7,973 threshold; 31,892 max | $1,962,315 |
| RSUs “Top-up” (Dec 16, 2024) | 15,939 | $1,635,979 |
Equity Ownership & Alignment
| Category | Detail |
|---|---|
| Beneficial Ownership (as of Jun 2, 2025) | 25,097 shares; <1% of common stock |
| Unvested RSUs (count; market value at $94.08) | 40,070; $3,769,786 |
| Unvested PSUs at target (count; market value at $94.08) | 33,573; $3,158,548 |
| Options exercisable | 12,616 @ $53.06 strike; expire 6/1/2031 |
| Shares vested in FY 2025 | 22,178 shares valued $1,803,342 |
| Stock Ownership Guidelines | CEO required 3x base salary; compliant as of Mar 29, 2025 |
| Hedging/Pledging | Pledging prohibited; hedging in approved window with preclearance |
| Insider Filings | Two delinquent Form 4 filings (Aug 13, 2024; Mar 26, 2025) noted by company |
Employment Terms
| Term | Provision |
|---|---|
| Appointment & Roles | CEO and Director effective Dec 13, 2024 |
| Base Salary; Target/Max Bonus | $650,000; 138.5% target; 277% max of salary |
| One-time RSU grants on appointment | $1,000,000 RSUs; $535,266.67 RSUs (top-up); pro-rata vest over 3 years |
| Annual LTI target (from FY2026) | $3,000,000, performance-based |
| Severance (without cause / good reason) | Salary continuation 24 months; target annual bonus for year of termination and following year; continued benefits for 24 months (subject to release) |
| Non-compete / Non-solicit | 24 months post-termination for Larson (plus perpetual confidentiality) |
| Change-in-Control Equity | PSUs vest at greater of 100% or performance-to-date; RSUs post Aug 1, 2024 require qualifying termination within 12 months to vest; earlier RSUs vest at CIC |
| Clawback | Dodd-Frank compliant recoupment policy adopted March 2023 |
| Insider Trading Policy | Margin/pledging prohibited; derivatives disclosed; preclearance required |
Compensation Summary (multi-year)
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Salary ($) | $392,308 | $400,000 | $484,400 |
| Stock Awards ($) | $1,622,548 | $1,310,685 | $5,158,929 |
| Non-Equity Incentive ($) | $489,280 | — | $712,611 |
| All Other Compensation ($) | $9,185 | $9,905 | $7,266 |
| Total ($) | $2,513,321 | $1,720,590 | $6,363,206 |
Board Governance
- Board service: Director since Dec 13, 2024; not independent .
- Committee roles: Audit, Compensation, and Nominating committees are composed of independent directors; Larson is not listed as a committee member .
- Board leadership: Chair and CEO roles are separated; executive sessions held with and without CEO; all incumbent directors attended >75% of Board/committee meetings in FY2025 .
- Governance update: Eddie Capel resigned as Chair and director effective Nov 10, 2025; Board size reduced to 7 .
Director Compensation
- Non-employee director program (for context): Annual cash retainer $65,000; equity retainer $100,000 in RSUs; Chair retainer $115,000; committee chairs $18,500 (Audit/Comp), $15,000 (Nom/Gov); committee members $10,000 (Audit/Comp), $7,500 (Nom/Gov) . RSUs generally vest at next annual meeting; change-in-control delivery provisions apply .
Say-on-Pay & Shareholder Feedback
- FY2024 say-on-pay support: ~94.5% approval; Compensation Committee made no significant changes as a result .
- FY2023 say-on-pay support: ~90.6% approval; ongoing monitoring of shareholder feedback .
Compensation Peer Group (benchmarking context)
- Peers include American Woodmark, Beazer, Cavco, Century Communities, Donaldson, Green Brick Partners, Griffon, Hovnanian, Installed Building Products, La-Z-Boy, LCI Industries, LGI Homes, M/I Homes, Patrick Industries, Tri Pointe Homes, Visteon, WillScot Mobile Mini, Winnebago .
- Committee targets competitiveness around median with potential above-median outcomes when sustained value creation is delivered .
Performance & Track Record
- FY2025 highlights: Revenue $2.5B (+23% YoY), net income $198M (+35% YoY), EPS $3.42 .
- FY2024 context: Revenue $2.0B, net income $147M, EPS $2.53 amid industry headwinds and acquisition integration .
- TSR: Company cumulative TSR value rose to $604.34 (company) vs $332.48 (peer group) on $100 initial investment base period through FY2025 .
- Initiatives: Board cited Larson’s leadership in digital direct-to-consumer, retail expansion, and customer-centric strategy in CEO succession press release .
Risk Indicators & Red Flags
- Pledging prohibited; hedging tightly controlled .
- Clawback policy compliant with SEC rules; three-year lookback on incentive compensation .
- Legal proceedings: Company states no material proceedings involving directors/officers/adverse interests .
- Section 16(a) compliance: two delinquent Form 4s reported for Larson (Aug 13, 2024; Mar 26, 2025) .
Equity Settlement/Vesting Supply
| Period | RSU/PSU Vesting Cadence | Implication |
|---|---|---|
| FY2025–FY2028 | RSUs in 3 annual tranches; PSUs cliff in 2028 | Regular RSU settlement may create periodic selling pressure; PSU vesting contingent on rTSR/market share performance |
Compensation Structure Analysis
- Increased equity proportion: CEO 90% of annual total direct compensation set as variable; emphasizes LTI alignment (RSUs/PSUs) .
- Shift away from options: No new options since FY2021; options remain outstanding from prior awards .
- Performance metrics sharpened: Annual bonus tied to EPS and revenue; PSUs to rTSR and market share, enhancing pay-for-performance rigor .
Employment & Contracts — Economics Summary
| Scenario | Salary Continuation | Bonus Treatment | Benefits | Equity |
|---|---|---|---|---|
| Involuntary termination (without cause) or Good Reason | 24 months | Target bonus for year of termination and immediately following year | 24 months subsidy | RSUs: next 1/3 vests; PSUs: specified % remains eligible for 1 year based on performance |
| Change-in-Control | — | — | — | PSUs vest (>=100% or performance-to-date); RSUs: post Aug 1, 2024 require qualifying termination within 12 months; earlier RSUs vest at CIC |
Investment Implications
- Alignment: High LTI weighting, stringent rTSR/market share PSU metrics, clawback policy, and strict pledging prohibitions support shareholder alignment .
- Retention/Continuity: 24-month non-compete/non-solicit and robust severance economics reduce near-term CEO turnover risk; RSU cadence and PSU cliff vest provide retention glue .
- Near-term supply: RSUs vesting annually may create periodic settlement-driven selling; monitor Form 4 activity and any 10b5‑1 plan disclosures (company notes two delinquent Form 4s) .
- Governance: CEO is a director but not independent; roles of Chair and CEO are separated, mitigating dual-role concentration; note Chair resignation in Nov 2025 and Board size reduction, watch for follow-on governance updates .
- Performance leverage: FY2025 outperformance translated into above-target bonus (115.5%) and positions PSUs for potential future payout; sustained execution on rTSR and market share targets would further reinforce pay-for-performance credibility .